As America’s smartphone giant prepares to launch a new range of iPhone 6s and iPhone 6s Premiums, it is already claiming global sales will top last year’s stampede when it sold 10 million phones in a weekend launch. It bases this on pre-orders from China it describes as ‘very strong’. We will only know for sure when the smartphones hit China’s Apple market on September 25. Remember Nokia?
China’s Apple Market the Force Behind the Surge
Business analyst Gene Munster at Piper Jaffray ascribes Apple’s optimism to strong demand in China’s Apple market. In fact, he thinks the brand’s global sales would have been “roughly flat” without it. He estimates up to 13 million of the new phones will exchange hands come the last weekend in September, with China’s Apple market grabbing 2 million of them.
What’s the Fuss About the Phones?
Apple relies on smartphone sales for 60% of revenue. Its stock value has been staggering since it posted worrisome numbers on July 21st, and New York markets responded with a 12% dive. This is a reflection of China’s economic downturn, which threatens its ability to maintain its growth trajectory.
Clearly, China’s Apple market is drawn to the prospect of an improved camera, a faster processor, and a new feature called 3D Touch that provides shortcuts to common tasks when applying stronger pressure to the screen. The yuppie brigade will no doubt also be pleased to palm the new devices on the same day the Z Generaton acquires them in Australia, Canada, France, Germany, Japan, New Zealand, Puerto Rico, Singapore, the US and the UK.
Apple is set to repeat last year’s uptick when it released its iPhone 6 and iPhone 6 Plus. It fell back after that, and may well retire again. BGC Partners’ Collin Gillis commented that Apple “had always enjoyed a burst of sales of new phones from die-hard fans and customers who are due for an upgrade”. China’s Apple market may have the final say.